Lockheed Martin Pension Fund Invests in Hidden Road
Defense contractor Lockheed Martin’s pension fund has made an investment in Hidden Road, a prime brokerage that provides institutional access to cryptocurrency. Hidden Road absorbs downside risk for hedge funds in the event of leverage bets going wrong.
Key points:
– Prime brokers lend funds to large companies for leveraged bets in established markets.
– Hedge funds often face losses that are then passed onto investors like Lockheed Martin.
– The risks associated with prime brokerage in crypto markets have raised concerns among experts.
– The relative immaturity of prime brokers in the crypto space is also a worry.
– Industry participants fear that Hidden Road may struggle to survive major market events due to its “thin” balance sheet.
Singapore Boosts Its Crypto Presence
Singapore has been strengthening its position in the crypto industry. The Monetary Authority of Singapore (MAS) has granted a payment license to stablecoin issuer Circle and has introduced draft rules for Singapore-dollar-backed stablecoins.
Key points:
– MAS has launched a $112 million investment fund to support Web3 and fintech projects.
– The central bank has proposed regulations that require crypto exchanges to keep customer assets in a separate trust.
– A recent theft involving a contractor from Bybit has led to a judge classifying crypto as property.
Conclusion
While Lockheed Martin’s investment in Hidden Road demonstrates growing interest in crypto among pension funds, there are concerns about the risks and immaturity of the prime brokerage market. Singapore, on the other hand, is making strides in establishing itself as a crypto-friendly jurisdiction with new regulations and investment initiatives. These developments reflect the ongoing evolution and regulatory efforts within the crypto industry.
Note: This is a fictional summary and does not reflect real news or events.
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